Today we will discuss and explain how tax sales work in the state of Maryland.
Maryland is a lien state with 24 counties. They pay anywhere from 8% to 20% and it accrues monthly. They have a two-year redemption. With a minimum redemption period of six months. The bidding is done by premium bid.
Most of the Maryland counties hold their auctions on location. The tax lien certificate auctions for Maryland are held in May. A few counties conduct their auctions online at RealAuction.com and The city of Baltimore, Maryland has an annual tax lien certificate auction every May on the GrantStreet.com website.
More Important Information about Maryland
Maryland gives great leeway to the counties to make rules and conduct auctions. As a result there are large differences from county to county. This is a state to REALLY pay attention to due diligence and educating yourself as to the rules.
The bidding method will be either a high bid or high bid premium process. The high bid premium is where the participants make their bids at the minimum bid plus 20% of the difference between the premium bid and 40% of the market value of the property. Whereas, the high bid is just highest bidder wins starting at the minimum bid.
The interest is anywhere from 8% to 20% per annum, depending on the county, and it accrues monthly. The interest begins to accrue the month following the month of purchase. The life of the tax lien certificate is 2 years while the minimum redemption period is 6 months. The redemption period begins from the date of the auction. In some counties, unsold tax lien certificates are available for purchase year round from the county Treasurer’s office, so again, it is important to know which county has which rules.
If you would like to have Maryland Tax Sale explained even more, click on one of the links below:
Interested in Tax Sales in Another State?
Tax Sales investing is a niche that has the potential to be insanely profitable.
However, most investors do not have a deep understanding of this investing strategy.
Every state has a unique set of rules and regulations. There are some basic rules you need to understand as to how the process works. Generally, states will fall into one of three categories:
- Tax Lien States
- Tax Deed States
- Hybrid States
Hybrids are states who conduct their tax sales by selling tax deeds with a caveat. The deeds have a redemption period much like a tax lien certificate.
This map provides links to information for every state as well as Washington DC.